Kretto Syscon Downgraded to 'Sell' by MarketsMOJO, Caution for Potential Investors

Kretto Syscon, a microcap company in the hospital and healthcare services industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 26, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 0.95%, poor long-term growth in net sales and operating profit, and a weak ability to service its debt with a poor EBIT to Interest ratio.
Additionally, the stock is currently trading at a very expensive valuation with a 1 Price to Book Value, and while it has generated a return of 43.42% in the past year, its profits have only risen by 71%. This results in a PEG ratio of 0.1, indicating an overvalued stock.

On a positive note, the company has shown strong results in the quarter ending June 2024, with its PBDIT, PBT LESS OI, and PAT all at their highest levels. The stock is also technically in a mildly bullish range, with its MACD and KST technical factors both being bullish.

Majority shareholders of Kretto Syscon are non-institutional investors, and the company has consistently generated returns over the last 3 years. In fact, it has outperformed the BSE 500 in each of the last 3 annual periods.

While Kretto Syscon may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors. With weak fundamental strength and an expensive valuation, it may be wise to carefully consider all factors before making any investment decisions.